Update Central European Distribution (CEDC)

05/26/2011 4:21 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Central European Distribution (CEDC), the largest vodka producer in the world, was up 3.6% yesterday, May 25, to close at $12.21 on a report on Benzinga.com that Russian billionaire Roman Abramovich is looking to buy the company. Abramovich spokesperson John Mann denied that Abramovich is seeking to acquire the company. The story is “another poor attempt to make money off Abramovich’s name,” Mann told Bloomberg.

The stock has given up some of that gain today. The shares are down 1.6% to $12.02.

I’d expect other rumors of acquisitions bids on Central European Distribution in the days ahead. Don’t assume that where there’s smoke there must be fire. Traders love to put fallen favorites like Central European Distribution in play with acquisition rumors. (For more on what caused the stock to plunge to these levels see my post http://jubakpicks.com/2011/04/18/update-central-european-distribution-cedc/ )

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund, may or may not now own positions in any stock mentioned in this post. The fund did own shares of Central European Distribution as of the end of March. For a full list of the stocks in the fund as of the end of March see the fund’s portfolio at http://jubakfund.com/about-the-fund/holdings/

 

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